Letters to Fleet News’ editor Martyn Moore.
CAP re-forecasting story risks confusion
The front page report (November 13) headlined “CAP to lower its value forecasts” risks confusing readers at a time when clarity on future market prospects is vital in helping to restore confidence.
The implication that this is the first time in CAP’s history that used vehicle values have been re-forecast is incorrect.
In truth, CAP Monitor is constantly adjusting forecasts in light of all the evidence available, such as changing consumer tastes in the used car market, expected volumes, seasonal factors and general economic circumstances.
This is, however, the first time we have conducted a full market re-forecast, covering all model ranges in one exercise.
It is important to understand that this was prompted by the emergence of consensus among government, the International Monetary Fund, our own experts and others across the industry on expected economic conditions over the next three years.
Wrapping the announcement of CAP Monitor’s re-forecast of future residual values up to three years ahead with reports on current used values performance is also potentially confusing for readers.
For example, the report seemed to suggest that the Monitor re-forecast was connected with BCA’s announcement of October used value reductions, when the two are completely separate issues.
CAP Monitor is taking an evidence-based view of the future market, based on the emergence of an agreed economic prognosis.
One of the most damaging aspects of this year’s downturn in the used vehicle market has been the uncertainty this has created for the future.
The Monitor re-forecast will, in fact, assist decision-makers by helping them to establish a clearer forward view than has been possible for some months.
Communications manager, CAP
Small fleets can find getting a deal tough going
I totally agree with the comments, “Internet makes sure that the price is right for fleets” (FN50 supplement), which state that larger fleets should buy on a combination of a service proposition, at the appropriate price for their needs, as the customer.
Service delivery is essential for larger fleets and buying
on price is not always the best route.
However, Chris Glen, from the Federation of Small Businesses, said at the FN50 Conference that small fleets were “canny buyers who wanted a good service”.
They also want a supplier who has a sound knowledge of funding products, offering a good client relationship and knowledge of the vehicle makes and models.
Small fleets may not have a fleet manager nor may they have the time or knowledge of the market to find the right deal.
If you Google “contract hire” you get 2.7 million results so who do you call if you want quotes from different suppliers?
Price was mentioned several times in the article.
In my experience, if you put 10 leasing companies in a room and ask them to quote on the same vehicle, you would get 10 different rentals.
Ask them to quote a month later and the rentals would probably change.
Maintenance contract hire is actively promoted to engage small businesses in a service delivery proposition that also offers fixed cost motoring in these uncertain times.
Director, Compare Contract Hire